The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-09-30
The Insurance Bill.

The bill to regulate the insurance bust
ness in this State, now under consideration
by the Legislature if adopted in its present
shape, may do n great deal Of harm. In its
original form, as introduced, it is
said to have been drafted by
Comptroller General Wright, who is, ex-
| officio, the State Insurance Commissioner,
and in that form met the general approval
Of the insurance men of the State But it
was not allowed to retain that form. in
the Senate, at the suggestion of
Mr. Dean, who represents the Rome dis
trict, it was amended by tho addition of
section "A, and on account of this amend
ment much opposition is being manifested
by people whom it win affect 1t provides
THAT whenever it shall be made plainly to
appear by competent proofs to the Commits
sloner of Insurance that any insurance COM
pany licensed to do business in this State
has entered into any contract, agreement,
pool or other arrangement with any other
insurance company or companies licensed
to do business in this State for the purpose
of, or that may have the effect to prevent
or lessen free competition in the business of
insurance in this State, thereupon said Com
missioner shall revoke the license of such
company or companies, and the same shall
not be re-issued until the President or chief
officer shall file an affidavit with said Com
missioner stating that all such contracts,
agreements, pools or other arrangements
have been annulled and made void''
This section Is objected to by insurance
companies because it virtually abolishes the
Southern Tariff Association. In the argu
ments before the Finance Committee of the
House it was shown that the losses both to
the companies and the assured had been less.
by reason of the safeguards required by the
association. 1t was also shown that in
stead OF the association making in
surance dearer, it had, by equalizing
rates and providing greater protection
against the spreading of fires, reduced its
cost. While the passage of the bill CON
tanning this Objectionable feature would
make the association illegal in this State, it
Is claimed that it could not prevent the
practice, in a surreptitious way and de-
prived of its best features, of the system it
was inaugurated to enforce, as the com
panies could have secret understanding
and instruct their agents accordingly.
One of the strongest arguments against
the Interpolation of section "A into the bill
as proposed by Comptroller Wright is the
effect which it would probably have upon
local or State insurance companies. With
out such combination as the Tariff As
ISOLATION, in spite of any secret agreement
which might be entered into, a war of rates
ho 81,
such war the home companies
would be ruined, as with their linn
tied resources, compared with those
OF the great foreign companies, they would
be utterly unable to compete for bust
ness. Such a war would be a local
one, and the business of our home
companies is almost entirely local, while
that OF their competitors covers the whole
country This fact, leaving out the question
OF relative resources, would alone decide
the fight against the home COM
panies. Savannah's new venture, the Sa-
vannah Fire and Marine Insurance Com
pany, in which our citizens have invested
10000, would be seriously affected in such
fight, as would also the old and reliable
Southern Mutual of Athens, and the com
panies in Columbus, Macon and Atlanta.
10 injure these companies would be to
cripple very important factor in the politi-
cal economy of the State, without any COM
pensating benefit whatever. They retain at
home large amount of the capital and
earnings of the people which would other
wise go abroad.
1t would be well for the Legislature to con-
slider these objections TO the Dean amend
ment, and pass the bill as proposed by the
Comptroller General. Mr.. Wright is the
officer intrusted by law with the manage
ment of the insurance business of the State
and is familiar with its needs. If experience
shall prove that his Judgment was in any
respect faulty the next Legislature can
make the necessary changes in the law.